Money Laundering on Dark Web is a very commonly conducted crime. But how do criminals launder money on the Dark Web? There are hundreds of different ways to clean illegally earned money through darknet. This article is an insight into the dark side of the digital currency.
What Is the Dark Web?
The Dark Web is a hidden sinister sub-region of the internet that supports anonymous and unlawful practices. Traditional browsers cannot access the Dark Web, which is a part of the deep web. You will need specific settings and software to access the deep web. The Dark Web does have its rightful policies and provides extreme protection and privacy, but it is primarily used for wrong and illegal activities.
Now, over time, the Dark web’s animosity and protection have made it a criminal hub, where people do all kinds of illegal activities and every illicit product and service is available through Darknet markets. The most terrifying trend the darknet has given birth to is money laundering through cryptocurrencies.
Rise Of Money Laundering On Dark Web
The rise of the Dark Web has also given rise to digital money laundering on the darknet. The anonymity feature of the dark web has made it easier for criminals to turn their illegally earned money into legitimate money. Money laundering is done by violating digital currencies like cryptocurrencies, which include Bitcoin, Monero etc. The authorities can hardly trace any money laundering as cryptocurrencies provide segregated and collective ways of fund transfer.
Besides cryptocurrencies, criminals also use shell companies and offshore accounts to move money and to disguise the origin of money. Mixers, tumblers, and online gaming sites are also used to clean the illegal money. All of these activities pose a significant challenge for the law authorities to track and trace the money flow.
Methods Of Money Laundering On Dark Web
Sharp-minded criminals use thousands of money laundering on dark web methods. All of these methods are designed in such a way that it makes it extremely hard for authorities to track down the money and identify individuals. The most commonly used methods of money laundering on the Dark Web are the following:
Mixing Or Tumbling
Cryptographic services like mixers and tumblers help the money launders as they mix different potentially traceable crypto funds. Owners of illegal crypto funds use these services to mix up their funds with others to make it impossible for their funds to be traced and to maintain their privacy. Also some users request the software to transfer the funds in chunks or at a different date so they can not be traced.
Shell Companies
Shell companies are companies that don’t have any employees, business, or operations and are used for raising funds for companies, mergers, etc. However, in other cases, criminals create shell companies to hide their illegal activities and also to avoid paying taxes. Fraudsters transfer and deposit money on different accounts undercover all the while appearing to be legitimate to cover their true source of income.
Digital Currencies
Digital currencies like cryptocurrencies, especially Bitcoin, are used for money laundering on dark web. Criminals can very easily move money across borders with relatively low fees as the technology behind it records transactions but doesn’t record the user’s identity. This makes it a challenge for authorities to trace the illicit funds. Additionally, criminals can use mixers and tumblers to manipulate their fund transfer further and then transfer it to different online wallets or use the currency to make online purchases.
Money Mules
Mules are the individuals hired by criminals to carry out their laundered valuables. Money mules are like drug mules and are used to launder money unknowingly. Individuals who are completely unaware are recruited by criminals to launder money on their behalf. Mules are paid a large sum of money in return for the money transfer job they do without being even aware that they are used as a means of money laundering.
Peer-to-Peer Networks
Criminals also use peer-to-peer networks for money laundering on Dark Web. Peer-to-peer networks are networks that allow people to transfer their money or funds directly to other people without any bank or system being in between. This is yet another way to trick the law agencies.
There are many other ways of money laundering on Dark Web for illicit funds like casinos, gambling, cash-intensive businesses, etc.
Conclusion
The act of hiding and money laundering illegally earned money is thousands of years old. With the evolving world and technology, the ways to launder money have also evolved, with money laundering on dark web being the latest and safest way for criminals.
